GoMama prefers Ripple to Stellar

by | May 11, 2020 | 0 comments

GoMama was founded in New York in early 2018 by Eric Ramos, with the aim to bank the unbanked in LATAM, and penetrate the remittance and money transfer sector.

The GoMama payment network offers a mobile application built on Stellar’s Blockchain Protocol that allows users to transfer money, pay utility bills and top up mobile phones for friends and family overseas, without dealing with the high fees and slow settlement times of traditional remittance services.

GoMama and Stellar

In late 2018, GoMama partnered with Stellar, aiming to reduce cross border payment fees to almost Zero and facilitate utility bill payments and topping up phones, via its mobile app.

According to the announcement, GoMama would form partnerships with over 140 local vendors and 40,000 point of sale locations that would allow its customer to send and receive money offline, as well as top up their wallets. Users would also be able to deposit directly to their wallet, and a stable coin would remove fluctuation of token price.

Discussions with Ripple, Dash and Stellar

In June 2019, Ramos revealed that GoMama would leverage blockchain technology for cross-border payments, increasing speed and transparency while lowering costs, primarily for the marginalized populations often left out by their limited access to the banking world.

“Our user demographic is most likely unfamiliar with blockchain technology. In order to not impede the adoption of our service, we will abstract the blockchain details from our user as to not confuse them and create distrust. The user’s funds will be held in USD, and be paid out in the local currency of the country they are transferring to. Blockchain technology will only be implemented in the backend transfer process to increase speed and efficiency. We have been in discussion with both Ripple, Dash, and the Stellar Development Foundation whose strong solutions can be seamlessly integrated into our remittance service.

Ripple offers advantages

In an interview with Blocklike in December 2019, Ramos revealed that GoMama’s goal was to remain blockchain agnostic and use one or multiple blockchains in order to achieve the fastest possible settlement for transactions while also achieving the most favorable exchange rate. Ramos also explained that a new partnership with Ripple would allow GoMama to utilize its already functioning payment network in Latin America.

“GoMama’s new partnership with Ripple will allow us to explore the benefits of distributed ledger technology. Ripple already has functioning payment corridors into Latin America. Stellar’s blockchain is still of great interest to us for creating faster and cheaper payment solutions but requires more development on the payment corridors.”

This comes as no surprise since RippleNet is already a fully developed and functioning network, with ODL already being utilized in Mexico by MoneyGram and other money transfer companies. More than 6% of remittances from the U.S. to Mexico moved through Bitso (Ripple’s ODL partner exchange in Mexico) and XRP in April 2020 and the growth sees no signs of slowing down.

Rebranding and ODL plans?

GoMama seems to be in the process of rebranding to eSend, with a new website now available and its LinkedIn profile updated. It also seems that the company’s Product Manager and Software Developer Quentin Vidal has built a POC (proof of concept) money transfer portal for third party agencies sending money transfers to Mexico by leveraging RippleNet ODL for payment execution and settlement on SPEI.

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